Proposed laws requiring retailers to ensure clothing bought from Australian manufacturers is not made by illegally employed outworkers could deter retailers from buying Australian-made clothing, local clothing retailers have warned.
Under a mandatory code of practice for retailers proposed by the State Government, retailers would have to check whether suppliers use outworkers before entering into an agreement with them.
If the supplier does use outworkers, the retailer will have to obtain an undertaking from the supplier that the workers are employed on conditions equal to the relevant industrial award.
Retailers would be required to send lists of their suppliers to the NSW Office of Industrial Relations and the Textile, Clothing and Footwear Union twice yearly and make records of their clothing purchases available to these organisations on request..
The NSW Government and unions would use the information to check that correct wages were being paid to outworkers.
Retailers would also be responsible for reporting suppliers found to be employing outworkers in unfavourable conditions.
Retailers who do not comply with the Ethical Clothing Trades Extended Responsibility Scheme could face a $11,000 fine.
Retailer John Whyte of Whytes Moss Vale and Mittagong said the measures could be the death knell of the Australian clothing industry.
Since the laws will not apply to imported clothes, the requirements could result in a reaction amongst retailers against Australian-made products,, he said.
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